Indonesia’s Newly Wealthy Included in Top Four

Indonesia’s Newly Wealthy Included in Top Four
Friday, 29 June, 2007 | 12:22 WIB

TEMPO Interactive, Paris: The number of billionaires jumped drastically by 8.3 percent in 2006. According to the survey carried out by the financial firm, Capgemini SA and the United States investment bank, Merrill Lynch & Co., Indonesia is at the position of top four countries with the most newly wealthy.

The survey’s report says now there are 9.5 million people whose wealth is more than US$1 million (more than Rp1 billion). This hike, according to the explanation quoted by AFP, “is due to the world’s fast economic growth and profit in the exchange market.”

With this hike, the network of billionaires joined in the exclusive club High Net Worth Individuals also expands.

The research shows that Indonesia along with Singapore, India and Russia contributed the most newly wealthy to the world. They have US$1 million in wealth at the minimum.

The wealth, according to Capgemini SA and Merrill Lynch & Co.’s report, “is assets in the form of cash, security bonds and savings. These are not yet including houses or several precious art collections.”

The same research also focuses on the billionaires’ investment money flow. The result is half of the rich buy private jets, yachts, finance sports team or bet on horse races. The remaining is for buying antiques, wine and jewelry.

Annual research that was held for the 11th time in 71 countries recorded the great number of the newly rich from Asia. The World’s Wealth Survey says the increasing number of rich in Asia reached 8.6 percent in the last seven years.

Although the number is still low compared to that of the United Sates and Canada which is around 9.2 percent, it is still more than Europe’s which is only 6.4 percent. This number, according to the two New York-based firms, will increase in 2011. Capgemini SA and Merrill Lynch & Co. estimate the growth will reach 6.7 percent with the wealth totaling US$51.6 trillion. Compared to last year, the total was around US$37.3 trillion.

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